Hot'lanta, Inc The Fixed Utilities Cost Per Month Is:
A) $3,764

question 80

Multiple Choice

Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: $\begin{array}{lrr}\text { Month }&\text { Utilities }&\text { Machine Hours }\\\text { January } & \$ 8,700 & 800 \\\text { February } & 8,360 & 720 \\\text { March } & 8,950 & 810 \\\text { April } & 9,360 & 920 \\\text { May } & 9,625 & 950 \\\text { June } & 9,150 & 900\end{array}$ The fixed utilities cost per month is:

• A) $3,764.
• B) $4,400.
• C) $4,760.
• D) $5,100.
• E) None of the other answers is correct.

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Definitions:

Fixed Assets

Long-term tangible assets, such as property, plant, and equipment, used in the operations of a business and not expected to be converted to cash in the near term.

Cash Dividends

Payments made by a corporation to its shareholder members. It's the share of the company's profits, decided and managed by the board of directors, and paid out to shareholders.

Equity Sold

The process of selling ownership interest in a company in exchange for capital.